Richard Gomez backs 100% foreign ownership of businesses to stir job creation

Neophyte Leyte Representative Richard Gomez on Friday clarified that he is in favor of amending the Constitution particularly allowing foreigners to own businesses at 100% to generate more jobs.

Gomez made the comment after initially comparing the Constitution to an old car wherein spare parts must be replaced.

"I used the analogy [of comparing it to an old car] para mas maintindihan ng masang Pilipino (so the people can easily understand it). Because when you say Charter change, people immediately think it is about term extension, and people are allergic to it," he said in an ANC interview.

"We won't touch on limits on advertising and media ownership. What is important here is I feel strong about the economic provision [of the Constitution], Article 12. A lot of people are jobless, our unemployment rate is at 6%. If we revise that [provision] on ownership of businesses, we will be bringing in foreign direct investments that can greatly help in addressing our unemployment problem," Gomez added.

Article 12, Section 10 of the Philippine Constitution states that "The Congress shall, upon recommendation of the economic and planning agency, when the national interest dictates, reserve to citizens of the Philippines or to corporations or associations at least sixty per centum of whose capital is owned by such citizens, or such higher percentage as Congress may prescribe, certain areas of investments."

Moreover, Article 12, Section 11 also restricts foreign ownership of public utilities at 40% by stating that "no franchise, certificate, or any other form of authorization for the operation of a public utility shall be granted except to citizens of the Philippines or to corporations or associations organized under the laws of the Philippines at least sixty per centum of whose capital is owned by such citizens, nor shall such franchise, certificate, or authorization be exclusive in character or for a longer period than fifty years."

Former President Rodrigo Duterte, however, signed a law amending the Public Service Act in March which allows 100% foreign ownership of telecommunications and railways, among others.

The new law reclassifies telecommunications, railways, airlines, and logistical facilities as public services from their previous classification as public utilities.

"I believe that through this law, the easing out of foreign equity restrictions will attract more global investors, modernize several sectors of public service and improve the delivery of essential services," then President Duterte said in a speech in the Palace.

Gomez, however, insisted that existing law is not enough.

"It (foreigners owning 100% of businesses) should not be a problem because if these big investors bring their funds here, our economy will stabilize, and it will trickle down to Filipinos," he said.

"Us politicians, we promise to work on providing jobs to get elected. When we sit as public officials, the jobs are not there. We have to bring them in. There are still 2.9 million people who are jobless, and they could get jobs once the foreign investors are allowed to come in," he added.—AOL, GMA News